The Open Electricity Market (OEM) was officially rolled out to Singaporeans in November, 2018. With the launch of a liberalised electricity market, consumers get access to diversify their electricity supply from retailers that they choose.
Since the open electricity market was launched, there have been a record of 12 electricity retailers in Singapore offering revised electricity price plans and bundles. The Energy Market Authority in Singapore is focused on ensuring a consistent and steady supply of electricity whilst promoting dynamism and innovation in the energy market from private retailers.
The birth of a highly competitive electricity market in Singapore is an opportunity for consumers to switch from their current electricity supplier to one that can offer them cost savings and benefits along with their electricity supply. Consumers now have the option to pick from fixed electricity price plans, discounts off the regulated tariff and packages that comprise promotions and rebates to maximise savings.
However, the choice to switch ultimately depends on the preferences of the consumers. They can continue purchasing electricity from the Singapore Power (SP) Group Company – the provider prior to the liberalisation of the electricity market.
With a wide range of options, how can consumers best go about choosing an electricity supplier in Singapore?
Things To Consider Before Switching Your Electricity Provider in Singapore
As the OEM is a fairly new development, consumers may be hesitant to make a switch after years of buying electricity from the sole provider, SP Group. However, with adequate research and planning, consumers can look forward to innovative electricity price plans, and choose if they want to switch their electricity tariffs away from their usual SP tariff.
Consumers need to consider two key areas when it comes to making a switch:
1. Best Electricity Price Plan For Your Needs
Prior to the open electricity market, the price paid for electricity usage is based on the regulated tariff set and reviewed by the SP Group and EMA Singapore. Over the years, the regulated tariff has seen its share of fluctuations influenced by the market conditions such as natural gas prices globally.
Making a switch will not affect your energy supply – regardless of the electricity supplier you sign up with, SP Group will continue operating the national power grid in the market and deliver to everyone in the OEM. With over 12 electricity retailers in Singapore offering over 20 types of price plans, consumers need to analyse the bundles against their personal energy consumption habits.
There are two types of electricity price plans to consider:
[A] Fixed Price Plan
Opting for a fixed electricity price plan means that you pay a fixed price (based on the calculated kWh) for the duration of your contract. The benefit of a fixed electricity price plan like this lies in the stability granted with no fluctuations in bills paid. However, if the regulated tariff drops below the amount paid for in the fixed price plan, consumers may miss out on additional savings.
Those who prefer stability can opt for the fixed electricity price plans in the open electricity market. Collate all the fixed electricity plans offered by the different retailers in Singapore and perform a cost comparison. It also pays to check the duration of the contract – shorter contracts (6-months) give you the opportunity to test out if the plan works for your consumption needs.
[B] Discount Off The Regulated Tariff
Electricity retailers in Singapore are also offering a different type of price plan, one that is pegged to the regulated tariff set by the SP Group.
Discount off regulated tariff plans benefit consumers when the regulated tariffs experience a drop in prices. However, although consumers will benefit from a drop in the price, they will also have to pay for any increases in the regulated tariff pricing.
Some electricity retailers in Singapore also offer non-standard pricing plans and implement loyalty schemes to offer promotions and discounts to consumers who continue purchasing from them.
2. Energy Companies in Singapore
How can consumers go about picking the right electricity retailer for their energy needs? Since SP Group will continue delivering the electricity supply in Singapore, choosing the electricity retailer that is right for you comes down to two factors:
[A] The quality of their customer service
Power supply companies in Singapore’s open electricity market can attract and retain a larger consumer base if they offer excellent service alongside their price plans. Consumers seeking to make a change in their electricity supplier will look for a company that does more than just offer competitively priced bundles.
For instance, Senoko Energy delivers a multi-pronged marketing approach whereby roadshows, in-app messages and website enquiries are all ways in which the staff actively engages with consumers. With increased choice in the market, a top-notch customer service is what sets the electricity retailers apart from each other.
[B] Value-add services on electricity bundles
The increased competition in the open electricity market compels retailers to innovate and come up with new offerings to keep their retention rates high. Likewise, Senoko Energy’s Smart Rewards programme is designed to offer consumers with exclusive promotions and rebates.
For instance, by partnering with banks such as UOB and Standard Chartered, the retailer is able to grant rebates with every bill spent. These value add-ons enable consumers to maximise the savings they get on every bill.
Smarter Solutions In The Open Energy Market
With greater choices, improved price plans and innovative offerings, consumers can now maximise their savings on electricity bills by switching to an electricity retailer that best accommodates their needs. Whether it is a simple fixed price plan or a combination of discounted rates and cash rebates, the open electricity market is an advantageous development in personalising energy expenditure and usage in Singapore.
Senoko Energy boasts a diversified portfolio of natural gas and clean energy solutions as one of the biggest power supply companies in Singapore. Senoko Energy continues to innovate – offering sustainable energy solutions on top of lowered electricity price plans that come with several benefits guaranteed to improve the quality of living for consumers here in Singapore.